Business
Hero Technologies Adopts Marijuana-Related Business (MRB) Banking for Financial Compliance and Cash/Risk Management
Hero Technologies Adopts Marijuana-Related Business (MRB) Banking for Financial Compliance and Cash/Risk Management.
About this update from Hero Technologies Inc.
[{"type":"text","content":"Move to MRB banking expected to help facilitate growth, maximize shareholder valueDOVER, DE / ACCESSWIRE / July 19, 2022 / Hero Technologies (OTCQB:HENC; Twitter: @heroicmindtech), a cannabis company focused on a "seed-to-sale" vertical integration strategy, today announced that it has migrated its banking operations from traditional financial institutions to banks that specialize in marijuana-related businesses (MRB). The company expects that the move to MRB banks will facilitate its compliance with state and federal financial regulations and help it manage cash and financial risk as it grows.Banking for MRBs is challenging due to the varied regulations across the U.S., the cash-intensive nature of the marijuana business, and the explosive growth of the cannabis industry.While marijuana is currently legal in 19 U.S. states and decriminalized and/or approved for medicinal use in 20 others, it remains illegal at the federal level. This creates a complicated financial compliance landscape. MRB banks specialize in the due diligence and oversight required to ensure compliance across this varied regulatory landscape.Compared to sales in other industries, legal marijuana transactions are disproportionately in cash. This results in further oversight challenges for banks, as well as additional costs, such as transportation and security. MRB banks are set up to manage these specific issues.The legal cannabis market is expected to grow to $57 billion worldwide by 2027, which presents both opportunity and risk for financial institutions. The structure of MRB banks is designed to support this rapid acceleration of legal marijuana markets. "We are excited to move from traditional banks to MRB financial institutions," said Hero Technologies' CEO, Gina Serkasevich. "We believe that backing from MRB banks will give us the specific financial tools we need to effectively execute our seed-to-sale cannabis market strategy. We are confident that this banking transition will help us manage rapid growth and maximize company value for our shareholders."About Hero TechnologiesHero Technologies Inc. is a cannabis company working toward a vertically-integrated business model. The company owns a majority stake in BlackBox Systems and Technologies LLC, an aeroponic cannabis cultivation system that provides optimal growing condi...